Mammoet

Mammoet provides customers with smarter, safer, and stronger solutions to any heavy lifting or transport challenge. A unique global network and an unparalleled fleet of equipment, combined with in-depth engineering expertise and the highest standards of quality and safety, result in an intelligent and flexible approach across a wide range of industry sectors. In building long-term relationships, the company is able to develop a deep understanding of each customer’s needs and offer the most efficient and cost-effective solution.

Mammoet has taken further steps in the execution of the strategy to be the leading and most sustainable heavy lift and transportation specialist. The geographical footprint was reviewed to find a right balance between local presence with yards and equipment and sufficient operational flexibility to serve clients globally. Driven by the energy transition, the diversification to more sustainable end markets—and wind power in particular —has become an important strategic pillar. Meanwhile, a strong focus on cost control sustainably lowered the cost base.

After a year of crisis, markets gradually started to improve during 2021. Even so, worldwide travel restrictions and international differences in regulations made it difficult, and sometimes impossible, to mobilise people and equipment to project sites, which created operational inefficiencies. The increase in workload put a strain on the workforce, especially in Europe & Russia and North America.

The increase in workload in the oil & gas sector was further amplified in the second half of 2021 by the on-site execution of the Arctic LNG project, in addition to several mega projects in North America. Maintenance and turnaround work in the sector also returned to normal levels, which powered a strong performance from the rental business. The Civil sector showed solid growth driven by a variety of smaller projects such as the transportation of tunnel boring machines and bridge replacements/removals in Europe. Large volumes were realised in the power sector, especially in European wind projects. These trends are expected to continue into 2022, a forecast reflected in the current strength of the order book.

Offshore wind sector projects mostly related to the handling of monopiles and jackets for offshore wind turbines in the APAC region. A rise in utilisation rates for the fleet of large global cranes is expected to continue in 2022. The organisational restructuring that started in 2020 led to a further reduction of both the asset base and workforce in various locations. Finally, in anticipation of next year’s growing workload, investments were stepped up in Europe and North America.

All in all, Mammoet strengthened its foundation to be ready to fully leverage market opportunities in 2022.

Litigation on the NY Wheel project incurred delays due to procedural matters, with a court decision on the merits of the case not expected before 2023. In November, Mammoet received a positive ruling in the Amuriyah arbitration. The focus will now shift to a fulfilment of the ruling by the parties involved.

Operational performance improved strongly in 2021 as the heavy lift and transport market recovered further and Mammoet additionally benefited from a focus on cost control. The ramp up of large projects and the strong offshore wind market supported a high workload towards the end of the year which will continue to benefit Mammoet in 2022. Net Income was furthermore positively impacted by the positive ruling in the Amuriyah arbitration. Whilst these developments are positive, restrictions in travel and other regulations linked to the COVID-19 pandemic continued to result in a challenging operational environment requiring the organisation’s full dedication to reliably serve customers.